Combining Value-Focused Thinking and PROMETHEE Techniques for Selecting a Portfolio of Distributed Energy Generation Projects in the Brazilian Electricity Sector

Mirian Bortoluzzi,Josimar Fernandes De França,José Francisco Dos Reis Neto,Tatiele Martins Amaral,Marcelo Furlan,Simone Geitenes Colombo,Celso Correia De Souza

doi:10.3390/su131911091

Mirian Bortoluzzi, Josimar Fernandes De França + Show 5 more

Open Access

https://doi.org/10.3390/su131911091

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Abstract

This article aims to propose a multi-criteria model to support decision-making from a portfolio in selecting technologies for Distributed Generation of Energy (DGE) projects based on the characteristics of the geographic space in Brazil. The decision model involves using multi-criteria to support the evaluation, prioritization, and selection of projects under a multistage decision-making process that fits into a strategic management cycle within the energy sector of Mato Grosso do Sul (Brazil). The over-classification techniques Preference Ranking Organization Technique for Enrichment Evaluations (PROMETHEE) II and V were applied under the Value-Focused Thinking (VFT) approach, reflecting the decision-maker or manager preferences among several conflicting criteria in the investment context of sustainable distributed energy generation projects. Based on real data, a numerical application is employed to view the steps of this decision model and illustrate the adequacy and effectiveness in practical issues of portfolio management.

Highlights

Energy is an essential element for human survival, and demand is growing every day [1]
This paper aims to propose a multi-criteria model to support decision-making from a portfolio in selecting technologies for Distributed Generation of Energy (DGE) projects based on the characteristics of the geographic space in Brazil
The Multicriteria Decision-Making/-Aiding (MCDM/A) approach combined with Value-Focused Thinking (VFT) was used, being the PROMETHEE II and V techniques which were applied to conduct this evaluation, as they can provide an evaluation of alternatives based on the decision-maker’s preference elicitation, considering the trade-offs among the criteria and the selection of the set of projects to be implemented initially given the budget constraint

Summary

Introduction

Energy is an essential element for human survival, and demand is growing every day [1]. If the linkage between these activities and their consequences are recognized, the need arises to propose new forms of planning, designing, and investing and, in doing so, to seek technically and economically feasible alternatives that encourage rationalization [5]. From this perspective, the importance of the decision-making process in the context of sustainability in the portfolio selections of electric energy generation projects can be Sustainability 2021, 13, 11091.

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